Sampo's Business Objectives and Strategy

Sampo Group's goal is to generate value for its shareholders. The Group aims to flexibly utilise opportunities that arise in the market to create shareholder value through transactions such as mergers and acquisitions.

Sampo Group's business areas are P&C insurance and life insurance. Sampo plc is also the largest shareholder in Nordea Bank, the largest bank in the Nordic countries. Nordea is treated as an associated company in Sampo's Group accounts. The business areas have clear strategies, based on targets for return on equity. There are few synergies between the P&C insurance and life insurance businesses.

If P&C Insurance - Security and Stability

If's mission is to offer attractively priced insurance solutions that provide customers security and stability in their business operations, housing and daily life. The company's vision is to be the leading property and casualty insurance company in the Nordic and Baltic regions with the most satisfied customers, leading edge insurance expertise and superior profitability.

If's strategic goal is to establish better profitability and customer satisfaction in the long run than competitors, coupled with high creditworthiness. The financial targets are to achieve a combined ratio of less than 95 per cent and a return on equity (RoE) of at least 17.5 per cent.

If's long-term priorities to ensure a strong and stable profitability development are based on a sound operating platform, leading cost position, most satisfied customers, leading edge insurance expertise and an investment strategy based on balanced risk. The following four areas constitute the key elements in If's strategic direction:

• Customer value – If will exceed customer expectations through superior insurance solutions, fast and accurate claims management and sympathetic behavior.
• Focused Insurance Expertise – If will purposefully strengthen the organisation's skills in developing, pricing and distributing insurance products, as well as in the areas of liability loss prevention and claims management.
• Nordic Business Platform – If will create competitive advantage through economies of scale and know-how transfer through an integrated Nordic and Baltic platform.
• Investment Strategy with Balanced Risk – If has adopted a low risk strategy in investments by maintaining a balance between insurance commitments and investment assets in terms of currency and duration. Surplus capital is invested to enhance total returns.

Mandatum Life - from an Insurance Factory to a Company of Excellent Services

Mandatum Life aims to be the leading life insurance provider in Finland and the Baltics. During the last few years the company has made substantial investments in the development of sales and customer service. Mandatum Life's core product areas will continue to be unit-linked policies, risk products and voluntary corporate pension schemes.

In Finland Mandatum Life relies mainly on three sales channels - in-house corporate sales teams, wealth management focusing on HNWIs and Danske Bank's network.

The company believes in the increased role of voluntary corporate pension schemes in complementing the statutory pension scheme. In addition it is seen that companies create significant value by covering the person risks of their employees through voluntary insurance covers.

Mandatum Life started its own wealth management and investment solutions activities in 2008. The focus is on wealthy private individuals and institutions.

Danske Bank's network is Mandatum Life's main channel in the private segment. Danske Bank's clientele has also got a lot of potential in the corporate customer segment, which is expected to lead to an increase in the sales of life insurance products to corporations. Due to the changes in legislation related to pension insurance Mandatum Life decided not to continue sales of its pension insurances for private individuals.

The result of Mandatum Life consists of three components - investment result, risk result and expense result. The strategy in investment management is to maintain adequate solvency in relation to market risks in the balance sheet. This enables the company to strive for a return that is higher than the risk free return. In expense and risk result Mandatum Life seeks growth, even if in the short-term the expense result will suffer from the substantial investments in sales channels. Mandatum Life's financial target is to produce a RoE of at least 17.5 per cent.